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THIRUVANANTHAPURAM: The Kerala cabinet on Tuesday gave its nod to avail Rs 3,500 crore loan from the World Bank towards the state's rebuilding efforts after it was devastated by the worst deluge, last year.

Earlier, a detailed UN report had stated that Kerala would need Rs 31,000 crore for rebuilding, post the August floods.

In October last year, the Disaster Needs Assessment report had prepared by a UN team and was submitted to Chief Minister Pinarayi Vijayan.

On the basis of the report, the state government had prepared a Rebuild Kerala initiative as part of which the World Bank's first development loan of about Rs 3,500 crore and received the cabinet nod on Tuesday.

“When the World Bank provides the Rs 3500 crore loan, the state will be able to utilise projects worth over Rs 5,000 crore for its development”, a government press release said.

"The World Bank loan would come in a 70:30 ratio, as per which the state would be carrying out works worth Rs 5000 crore in total. Chief Secretary has been asked to coordinate the follow-up works so as the state could be drawing the loan by June or July this year," chief minister Pinarayi Vijayan said.

The state cabinet also decided to allocate Rs 7.94 crore from the Chief Minister's relief fund to the Ockhi fund for purchasing 120 FRP (fibre-reinforced plastic) boats for fishermen who lost their livelihood during the Ockhi cyclone that hit the Kerala coast.

The cabinet also cleared the draft proposal of the Rebuild Kerala programme, which touches upon 11 areas of intervention including land utilisation, fisheries, livelihood, transportation, sanitation, roads and bridges water resources.